July 2014: Investment, Trade and Renewable Energy
Dear Valued Investors,
In the July issue of the BOI newsletter, we would like first to give you an update on the FDI flows covering the first semester of the current year.
For the first 6 months of 2014, FDI is estimated to have exceeded MUR 5 billion* as compared to the first semester of 2013 which recorded MUR 4.6 billion. This represents an estimated increase of 8.7%.
Mauritius participates actively in the global competition for FDI which has been a determining factor in the island’s industrial diversification, employment creation, export development and growth. FDI has indeed helped the country to shift from a dependence on agriculture to a diversified and dynamic economy with a higher per capita income.
In quantitative terms, FDI inflows into Mauritius are not high. Yet they play a significant role in boosting national growth. In as much as FDI contributed to the Mauritian miracle, today, it is helping the tourism industry, through cross-border merger or acquisition (M&A) transactions, to get access to finance, global best practices and new markets.
The Riu Hotels & Resorts from Spain and TUI A.G, a German multinational travel and tourism company, completed the takeover of three hotels previously known as Indian Resort, Le Mornea and Le Moreva, respectively. Investments in the three acquisitions and renovation works are estimated to the tune of MUR 3.3 billion. The three hotels are expected to open by February 2015 under the RIU brand.
During the second semester, Shangri-La Hotels, a premier hotel company based in Hong Kong with over 80 hotels and 34,000 rooms worldwide, will invest over MUR 800 million in the prestigious Le Touessrok Hotel. Shangri-la Hotels and Resorts will take over the management duties of the 200-room hotel and proceed with its re-launching as the Shangri-La Le Touessrok Hotel and Spa in August this year.
An important event for the semester under review was Thomson Airways’ maiden flight from Gatwick Airport, London, to Mauritius on 28th April 2014. Thomson is one the world’s largest charter airlines owned by TUI A.G.
Investments by flagship brands from Europe and Asia are expected to bolster arrivals from traditional as well as emerging markets. Chinese tourists’ heightened interest in Mauritius has resulted in the first flight of the China Southern Airline to Mauritius at the end of June 2014. These initiatives will contribute to achieve the target of one million visitors in 2014.
In this issue, we also present an overview of the World Investment Report 2014 covering FDI flows in 2013.
Furthermore, this edition of our newsletter features two interesting interventions. Mr. Sham Seetaram, CEO of Sarako PVP Co Ltd, shares about his solar farm in Bambous, whereas Mr. Emmanuel André, CEO of Sotravic Limitée, answers our questions regarding his DOWA and other renewable energy projects.
* As per BOI estimates. Official figures will be published by Bank of Mauritius shortly.
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